Improve my credit rating
How can I improve my credit rating? That is a question we are often asked by people who recently dealt with their debts through a proposal or bankruptcy filing. Credit ratings are generated based on a variety of information reported by members of the credit reporting agencies.
If I want to improve my credit rating it is important that I am dealing with members of the credit reporting agencies and I must use credit to develop a report.
Not all creditors report to credit reporting agencies so even though I may have good dealings with them they may not be helpful in rebuilding my credit rating. There are things that may hurt my credit rating these include using too much credit, maxing out credit limits, paying only minimum payments or even paying full balances each month – because I am not building a history or pattern of debt management.
It is important that I keep my levels of debt proportioned to fit within my Debt Service Ratio. If I am using too much credit, then I will not have access to more credit (debt) until I pay down my current creditors to fit within my threshold.
Remember that my mortgage and my car loan payments also factor into my Debt Service Ratio – so if I have a mortgage and a car loan I may trouble borrowing more money for other projects or purposes.